BOARD MEETING DATE: October 5, 2007
AGENDA NO. 14

PROPOSAL:

Recognize Revenue, Appropriate, and Reallocate Funds for PAMS, Appropriate funds for NATTS Program; Recognize Revenue and Appropriate Funds for PM2.5 and Enhanced Particulate Monitoring Program; Transfer and Appropriate Funds for Port Community Air Monitoring Program; Issue Purchase Orders and RFQ

SYNOPSIS:

U.S. EPA has allocated Section 105 Grant funds of $1,189,740 for the 16th Year PAMS program. As such, this action is to: (1) recognize revenue, and appropriate and reallocate unspent 15th year PAMS funds to the FY 2007-08 Budget; (2) appropriate funds to the FY 2007-08 Budget for the 16th year PAMS program; (3) appropriate new National Air Toxic Trends Station (NATTS) funds to the FY 2007-08 Budget; (4) recognize revenue and appropriate funds for the U.S. EPA PM2.5 monitoring program and the U.S. Department of Homeland Security Enhanced Particulate Monitoring Program to the FY 2007-08 Budget; (5) transfer and appropriate funds to the FY 2007-08 Budget from the BP/ARCO Settlement Projects fund to continue the Port Community Air Monitoring Program; and (6) issue purchase orders and an RFQ for fixed assets under these programs.

COMMITTEE:

Administrative, September 14, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

  1. Recognize revenue of $903,729 in the FY 2007-08 Budget and appropriate and reallocate unspent funds of $88,000 from the U.S. EPA Section 105 Grant for the 15th year PAMS program from the Undesignated Fund balance to the Major Objects in Science and Technology Advancement’s and Planning, Rule Development, and Area Sources’ FY 2007-08 Budgets as set forth in Attachment 2. (Expenditure appropriations exclude $165,558 in Salary and Employee Benefit amounts which is already included in the FY 2007-08 Budget.)
  2. Appropriate $774,600 of the total U.S. EPA Section 105 16th year (FFY 2007-08) PAMS award of $1,189,740 from the Undesignated Fund balance to the Major Objects in the Science & Technology Advancement and Planning, Rule Development & Area Sources FY 2007-08 Budgets as set forth in Attachment 1. Upon receipt of the grant award, appropriate the remaining balance. (Expenditure appropriations exclude $118,340 in Salary and Employee Benefits which is already included in the FY 2007-08 Budget.) The revenue associated with this grant has already been included in the FY 2007-08 Budget.
  3. Upon receipt of a supplemental National Air Toxics Trend Station Program Grant award, appropriate $35,700 from the Undesignated Fund balance to the Major Objects in Science and Technology Advancement’s FY 2007-08 Budget as set forth in Attachment 3. (Expenditure appropriation excludes $72,170 in Salary and Employee Benefits which were included in the FY 2007-08 Budget). Estimated revenue associated with this grant has already been included in the FY 2007-08 Budget.
  4. Recognize $255,500 in revenue of the total $840,138 U.S. EPA Section 103 Grant for the PM2.5 Monitoring program in the FY 2007-08 Budget. (Revenue recognized excludes the remaining $584,638 which is already included in the FY 2007-08 Budget.)
  5. Appropriate from the Undesignated Fund balance $370,050 to the Major Objects in Science & Technology Advancement's FY 2007-08 Budget as set forth in Attachment 4 for the PM 2.5 Monitoring program. (Expenditure appropriations exclude $470,088 in Salary and Employee Benefits which is already included in the FY 2007-08 Budget.)
  6. Recognize $242,079 in revenue of the total $2,435,145 Department of Homeland Security Grant for in the Enhanced Particulate Monitoring program in the FY 2007-08 Budget. (Revenue recognized excludes the remaining $2,193,066 which is already included in the FY 2007-08 Budget.)
  7. Appropriate from the Undesignated Fund balance $466,566 to the Major Objects in Science & Technology Advancement's FY 2007-08 Budget as set forth in Attachment 5 for the Enhanced Particulate Monitoring program. (Expenditure appropriations exclude $1,968,579 in Salary and Employee Benefit amounts and indirect costs which were included in the FY 2007-08 Budget).
  8. Transfer $29,856 from the BP/ARCO Settlement Projects fund to the General Fund and appropriate the funds from the Undesignated Fund balance to the Professional and Services Account in the Science & Technology Advancement FY 2007-08 Budget for the continuation of the Port Community and I-710 Freeway Air Monitoring Program.
  9. Authorize the Procurement Manager to:
    1. Execute a purchase order with Horiba Instruments, Inc. for an amount not to exceed $33,000 for the purchase of five (5) Carbon Monoxide analyzers as budgeted in the 16th year (FFY 2007) PAMS award;
    2. Execute a sole-source purchase order with Martin Container, Inc. for an amount not to exceed $15,000 for the purchase of one (1) Upper Air Station Shelter including tax and shipping as budgeted in the 16th year (FFY 2008) PAMS award;
    3. Execute a sole-source purchase order with Vaisala, Inc. for extended warranty services for five upper air profiler systems at a total cost not to exceed $93,000 as budgeted in the 16th year (FFY 2008) PAMS award;
    4. Execute a sole-source purchase order with Martin Container, Inc. for an amount not to exceed $20,000 for the purchase of one (1) Air Monitoring Station Shelter including tax and shipping as budgeted in the PM2.5 Monitoring program award; and
    5. Execute a sole-source purchase order with Thermo Fisher Scientific, Inc. for an amount not to exceed $28,000 for the purchase of two (2) Sequential PM2.5 Samplers including tax and shipping as budgeted in the PM2.5 Monitoring program award;
  10. Release RFQ #Q2008-10 for two (2) Ion Chromatographs at a cost not to exceed $90,000 as budgeted in the PM2.5 Monitoring program award.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

PAMS Program
In February 1993, the U.S. EPA promulgated the PAMS regulations for areas classified as serious, severe or extreme nonattainment. These regulations require AQMD to conduct monitoring for ozone precursors with enhanced monitoring equipment at a total of seven sites. The PAMS program is also funding the meteorological upper air profilers sited at LAX and Ontario airports, the upper air site installed at Moreno Valley in Riverside County, and a new upper air site in Orange County. Since the onset of the PAMS program, U.S. EPA has annually allocated Section 105 supplemental Grant funds in support of this requirement.

NATTS Program
There are currently 188 hazardous air pollutants (HAPs), or air toxics, regulated under the Clean Air Act that are associated with a wide variety of adverse health effects, including cancer and neurological effects. The U.S. EPA Government Performance Results Act commitments specify a goal of reducing air toxics emissions by 75% from 1993 levels to significantly reduce the health risks. The National Air Toxics Trends Station (NATTS) program was developed to fulfill the need for long-term HAP monitoring data. In Calendar Year 2007, the U.S. EPA expanded the NATTS program and has awarded Section 103 funds to conduct monitoring for toxic air contaminants at a two existing monitoring sites: Downtown L.A. and Rubidoux. The air toxics data serves as a continuum between past and future air toxics measurements programs such as MATES and allow for more accurate evaluation of toxic trends on a regional basis. Since this is a long-term trends monitoring program, it is anticipated that NATTS funding will be granted annually for the foreseeable future.

PM2.5 Program
Since 1998, U.S. EPA has provided funds under a Section 103 Grant for a comprehensive PM2.5 air monitoring program. To date, there are 19 ambient monitoring stations operating 22 PM2.5 samplers under U.S. EPA funding. In addition, U.S. EPA has supported the expansion of the network to collect continuous PM mass information at several sites within the South Coast Air Basin. This augmentation substantially adds to the fine particulate data which will help in the characterization of air quality conditions and health impacts.

Enhanced Particulate Monitoring Program
The AQMD has been providing enhanced particulate monitoring support as part of a national monitoring program since 2003. Sample collection began in early February 2003 and will continue for the foreseeable future. Initially, the U.S. EPA provided funding for training, sampling instruments, associated consumables, and labor resources. The U.S. Department of Homeland Security (DHS) is now funding the enhanced monitoring program. In FY 2006-07, DHS provided and continues to provide additional funds to cover the costs associated with the program.

Port Community and I-710 Freeway Air Monitoring Program
In January 2006, the Board approved the Chairman’s Clean Port Initiative. As part of the Initiative, the Board directed staff to conduct an enhanced air monitoring program in the port communities. In addition, the Board approved funding to conduct enhanced monitoring along the I-710 freeway corridor. A technical advisory group consisting of representatives from the Ports of Los Angeles and Long Beach, CARB, U.S. EPA, community organizations, labor, industry, and academia has met three times and provided input and comments to staff on potential monitoring locations, other emission sources that may have air quality and health impacts, and a draft monitoring protocol. Monitoring is being conducted in coordination with the Port of Los Angeles and Port of Long Bach air monitoring programs as well as several research studies being conducted by CARB. Monitoring in the port communities began in March 2007, and there are currently six monitoring sites fully operational and collecting comprehensive air quality data. Staff is also in the process of securing monitoring site locations for the enhanced air monitoring along the I-710 freeway corridor. The duration of these monitoring programs is expected to be a minimum of eighteen months.

Proposal

PAMS Program
The Board approved the 15th year PAMS award in November 2006. As in previous years, there is a need to appropriate unspent PAMS funds from FY 2006-07 to the FY 2007-08 Budget to cover costs for the fourth quarter of FFY 2006-07. The difference between the amount of revenue recognized and the expenditures appropriated for the 15th year PAMS carryover relates to $650K in encumbrances. The encumbrances are included as part of the FY 2006-07 budgetary expenditures so a lower expenditure amount is carried over to the FY 2007-08 Budget. Since cash won’t be paid out on the $650K in encumbrances until FY 2007-08 and since the AQMD is reimbursed by EPA on a cash basis, the revenue associated with the encumbrances will not be received until FY 2007-08.

U.S. EPA estimated that the 16th year PAMS program (FFY 2008) will be funded at $1,189,740. The proposed allocation of the 16th year PAMS funds is provided in Attachment 1. The U.S. EPA concurs with staff’s proposed allocation. To insure that the SCAQMD is able to continue program activities, prior to receiving the award we are recommending that a portion of the award be appropriated into the FY 2007-08 Budget. The balance will be appropriated upon receipt of the award.

NATTS Program
The Board approved the NATTS program award and budget for Calendar Year 2007 in January 2007 in the amount of $253,756. Of this amount, $27,870 was unspent in FY 2006-07 and was included in the Salaries & Employee Benefits major object of the FY 2007-08 Budget. The U.S. EPA is providing supplemental funding in the amount of $80,000 for additional samplers and to continue the NATTS program through June 30, 2008. Staff has prepared a budget for the expenditure of the supplemental and carryover NATTS funds as provided in Attachment 3. The U.S. EPA concurs with staff’s proposed allocation.

PM2.5 Program
U.S. EPA is providing $840,138 in Section 103 Grant funds for the continuation of the PM2.5 Program through March 31, 2008. Of this amount, $75,000 is intended for capital expenditures to meet new U.S. EPA air monitoring regulations regarding a national network of NCore Level II sites which must be implemented by 2011. This year, funding is being provided and capital expenditures are proposed for one of possibly two NCore Level II sites (Rubidoux), including trace-level gas analyzers, an NOy analyzer (total oxidized nitrogen species including NOx, nitric acid and PAN), and a new station shelter. In addition $110,000 of the total award is intended for upgrades to the PM2.5 Federal Reference Method sampling network. The proposed allocation of the PM2.5 award is provided in Attachment 4. The U.S. EPA concurs with staff’s proposed allocation.

Enhanced Particulate Monitoring Program
The U.S. DHS allocated $2,435,145 for the ongoing Enhanced Particulate Monitoring Program for FY 2007-08. Revenue in the amount of $2,193,066 for this grant has already been included in the FY 2007-08 Budget. This action is to recognize the remaining revenue in the amount of $242,079 in the FY 2007-08 Budget. An additional action is proposed to appropriate $466,566 to the Major Objects in the Science and Technology Advancement FY 2007-08 Budget as set forth in Attachment 5. An amount of $1,968,579 associated with Salary and Employee Benefits and indirect costs was previously included in the Board approved FY 2007-08 Budget. The proposed allocations have been discussed with and accepted by U.S. DHS.

Port Community and I-710 Freeway Air Monitoring Program
In September 2006, the Board approved a $700,000 budget for the Port Community and I-710 Freeway Air Monitoring Program. Of this amount, $400,000 was transferred from the BP/ARCO Settlement Projects Fund to the General Fund, and the remaining $300,000 was appropriated from the General Fund Undesignated Fund Balance. At the end of FY 2006-07, $376,988 of the BP/ARCO Funds and $137,407 of the amount appropriated from the General Fund had been spent on this program. Unspent funds have since reverted back to the respective fund accounts. The monitoring program is ongoing, and most of the continuing expenditures for FY 2007-08 will be covered by the existing FY 2007-08 Budget. However, additional funds are needed to complete a current project to develop and implement a web-based forum to present real-time air quality data to the public. As such, this action is to transfer $29,856 from the BP/ARCO Settlement Projects Fund to the General Fund and appropriate from the Undesignated Fund balance to the Professional and Services Account in the Science & Technology Advancement FY 2007-08 Budget for the completion of the web page for the Port Community and I-710 Freeway Air Monitoring Program.

Issue Purchase Order for Five (5) Carbon Monoxide Analyzers Under the PAMS Program
Staff has identified the need to replace the existing carbon monoxide (CO) analyzers in the ambient network. Some of the existing instruments are over 17 years old. As these instruments age, they are becoming increasingly difficult to maintain and repair. As such, staff recommends a replacement program for the CO analyzers to be instituted over the next three years.

In May 2007, the Board approved the purchase of five new CO analyzers from Horiba Instruments as part of the 15th year PAMS program as a result of a formal RFQ process. Horiba Instruments has agreed to honor the pricing set forth in their previous quotation for this additional order. Therefore, based on these recent RFQ results, staff recommends that the Board authorize the Procurement Manager to issue a purchase order with Horiba Instruments for an amount not to exceed $33,000 for the purchase of five CO analyzers.

Issue Purchase Order for Extended Warranty Services for Five Profiler Systems with Vaisala, Inc. Under the PAMS Program
Currently, there are four Model LAP-3000 radar wind and temperature profilers manufactured by Vaisala Inc in operation in the South Coast Air Basin. A fifth system has been purchased and is pending installation in the northern San Fernando Valley. These instruments reduce the need for balloon-borne soundings and help fulfill upper air monitoring requirements of the PAMS program and data needs for air quality analysis, modeling and forecasting. After the initial one-year warranty period, annual extended warranty services have been purchased from the instrument manufacturer, Vaisala, Inc. to cover repairs and parts replacement. The extended warranties cover contact with Vaisala programmers, engineers and technicians for system analysis and operational advice; priority for response when further testing, part replacement or repairs are needed; and the cost of all replacement parts and repairs. The warranty service assures that electronics, hardware and software problems will be resolved in a timely manner, without the need to separately obtain funding for individual tests and parts. Therefore, staff recommends that the Board authorize the Procurement Manager to issue a sole-source purchase order with Vaisala, Inc. for an amount not to exceed $93,000 for extended warranty services for five upper air profiler systems as budgeted in the 16th year (FFY 2008) PAMS award.

Issue Purchase Order for One (1) Upper Air Station Shelter Under the PAMS Program
Portable shelters, which are customized shipping containers, are used to provide housing for the upper air meteorological station equipment at the PAMS upper air sites. An additional 16-foot shelter is needed for a new planned site in the northern San Fernando Valley. In September 2006, the Board approved a sole-source purchase for several station shelters from Martin Container, Inc. Therefore, staff recommends that the Board authorize the Procurement Manager to issue a sole-source purchase order with Martin Container, Inc. for an amount not to exceed $15,000 for the purchase of one station shelter.

Issue Purchase Order for One (1) Air Monitoring Station Shelter Under the PM2.5 Program
An additional, larger shelter is needed to house the additional NCore Level II equipment at the Rubidoux air monitoring station. The new shelter will be a customized, 40-foot shipping container. Supplemental funding for NCore equipment provided as part of the PM2.5 program award will cover the full cost of this purchase. In September 2006, the Board approved a sole-source purchase for several station shelters from Martin Container, Inc. Therefore, staff recommends that the Board authorize the Procurement Manager to issue a sole-source purchase order with Martin Container, Inc. for an amount not to exceed $25,000 for the purchase of one station shelter.

Issue Purchase Order for Two (2) Sequential PM2.5 Samplers Under the PM2.5 Program
Sequential, multi-sample PM2.5 samplers which follow U.S. EPA approved federal reference methods (FRM) are deployed in the PM2.5 monitoring network (to date, there are only two such samplers approved by U.S. EPA). Since that time, the sequential sampler in used in the network has been discontinued by the manufacturer. The U.S. EPA is providing supplemental funding to address this issue. Staff recommends using the majority of these funds to extend the life of the current sampler network by retrofitting and stockpiling parts. The remaining U.S. EPA supplemental funds are proposed for the purchase of the only other commercially available FRM PM2.5 sequential sampler. Therefore, staff recommends that the Board authorize the Procurement Manager to issue a sole-source purchase order with Thermo Fisher Scientific, Inc. for an amount not to exceed $28,000 for the purchase of two sequential PM2.5 samplers.

Issue RFQ for Two (2) Ion Chromatograph Systems Under the PM2.5 Program
Currently, the laboratory conducts PM speciation for ions and hexavalent chromium using two ion chromatography systems. The current systems are require extensive maintenance due to age and are no longer supported by the manufacturers. It is more cost effective to replace these systems. Therefore, staff is requesting the Board to release RFQ #Q2008-10 (Attachment 6) for two Ion Chromatographs at a cost not to exceed $90,000 as budgeted under the PM2.5 program.

Sole Source Justifications

A sole-source award is authorized under Sections IV.B. of the Procurement Policy and Procedure when a purchase does not lend itself to substitution. Section VIII, (B) (2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified.

The requests for sole-source purchases of the replacement station shelters are made under Section VIII, B.2.c of the Procurement Policy and Procedure: The desired services are available from only the sole-source based upon the unique experience and capabilities of the proposed contractor or contractor team; (2) The project involves the use of proprietary technology; and (3) The contractor has ownership of key assets required for project performance. All of the new station shelters have been purchased from Martin Container, Inc. as a result of an RFQ issued in 2003. Only two bids were received at that time, and one was disqualified for lack of relevant experience. Therefore, this single vendor is the only known vendor with the unique expertise and capabilities required.

The new sequential PM2.5 samplers will be used for attainment designation purposes, and must therefore be designated as a Federal Reference Method by U.S. EPA. There is only one sequential PM2.5 sampler commercially available with this designation. Therefore, the request for the sole-source purchase of the sequential PM2.5 sampler is made under Section VI.A.4.a of the Procurement Policy and Procedure; the items are available from only one source.

Vaisala, Inc. is currently the only company capable of providing repair parts and services on the upper air profilers that they manufacture. Since Vaisala has exhibited unique expertise in providing troubleshooting, guidance and timely repair service through this extended warranty program, it is desirable to allow continuance of this coverage. Therefore, the request for the sole-source purchase of the extended warranties is made under Section VI.A.4.a of the Procurement Policy and Procedure; the items are available from only one source.

Resource Impacts

U.S. EPA Section 105 Grant funding will support the 16th year operation of the PAMS program and will further provide for equipment, temporary services, supplies and services, necessary to meet the objectives of the program.

U.S. EPA Section 103 Grant funding will support the continuation of the PM2.5 and NATTS Programs.

U.S. DHS funding will fully support the Enhanced Particulate Monitoring Program.

Funds in the amount of $400,000 have been previously approved by the Board from the BP/ARCO Projects Settlement fund, Fund 46, as Project E-10-R, Portable Air Monitoring Stations. Of this, $376,988 was expended in FY 2006-07. Staff is requesting that the remaining $23,012, plus an additional $6,844, be allocated to this program in FY 2007-08 from the BP/ARCO Settlement Projects fund, Fund 46.

Attachments (EXE 476kb)

1 – Proposed PAMS 16th Year Expenditures
2 – Proposed PAMS 15th Year Carryover Budget to FY 2007-08
3 – Proposed NATTS Expenditures FY 2007-08
4 – Proposed PM2.5 Program Expenditures FY 2007-08
5 – Proposed DHS Enhanced Particulate Monitoring Program Expenditures FY 2007-08
6 – RFQ #Q2008-10 for two Ion Chromatograph Systems


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